The impact of digitalization on entrepreneurial innovation: A comparative analysis between developing economies in Asia and in other regions

This study explores the relationship between digitalization and entrepreneurial innovation across developing economies. We assess whether higher levels of digital technology development within a country enhance the innovation potential of its entrepreneurial ventures and how this impact varies between Asia and other regions. Using data from the Global Entrepreneurship Monitor (2013-2022) and the Global Innovation Index along with its subindexes, we examine 11 developing economies in Asia and 57 developing economies in other regions. We find that digital technology development generally boosts entrepreneurial innovation. However, our results reveal a significant regional variation. The impact on product innovation is significantly stronger in developing economies outside Asia. This suggests that while digitalization supports innovation generally, its effects may be more transformative in regions outside Asia. These findings offer valuable insights for policymakers seeking to leverage digitalization to drive innovation and economic growth.